The EUR/USD appears to have stabilized above the 1.0700 mark for the time being. Markets tend to get nervous when political uncertainty arises, but polls have consistently pointed to the same outcome – a fractured parliament, with Marine Le Pen’s party likely receiving the majority of the vote but falling short of achieving a parliamentary majority.

Despite recent consolidation, EUR/USD remains below the 200 SMA, with the lower bound of the pair’s broad range at 1.0643 and the April swing low at a flat 1.0600. Key events on the calendar include US GDP data and PCE on Friday, with PCE carrying significantly more weight as it could validate the recent encouraging CPI data in the US, which could be bearish for the dollar.

EUR/USD: A Softer Dollar May Limit Downside Risks for Now

Jun 25 2024

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